Actuant Corporation announced results for its second quarter ended February 28, 2015. Primarily reflecting the strengthening of the US dollar, total sales declined 8% year-over-year.
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Core sales were down 2% (total sales excluding the impact of acquisitions, divestitures and foreign currency rate changes), net acquisitions and divestitures were neutral, and unfavorable currency translation reduced sales 6%.
Excluding an asset impairment charge of $1.33 per share related to adverse conditions in upstream oil & gas markets, diluted earnings per share from continuing operations (“EPSâ€) were $0.28, compared to $0.30 in the prior year, (see “Consolidated Results†below and attached reconciliation of earnings).
Repurchased 2.9 million shares of common stock for $76 million in the quarter. Actuant’s Board of Directors approved a new seven million share repurchase authorization this week following the buy-back of approximately 11 million shares, or 15% of the Company’s stock over the past twelve months.
Updated full year sales and EPS guidance (excluding the impairment charge), now expected to be in the range of $1.245-1.265 billion and $1.65-1.75 per share, respectively.
Mark E. Goldstein, President and CEO of Actuant commented, “In addition to normal seasonality, the second quarter proved challenging given the further strengthening of the US dollar, low oil & gas prices and weak conditions across a number of end markets. The Energy segment’s results were in line with expectations, including 2% core sales growth which reflected robust Viking performance partially offset by accelerating weakness in other upstream markets, most notably in the North Sea.
"We were pleased with Industrial’s 2% core growth, yet demand remains inconsistent. Within Engineered Solutions, moderating agriculture demand, weak auto volumes and last year’s truck pre-buy drove an 8% core sales decline. Given these mixed end market dynamics and currency headwinds, we are executing a number of actions to better align and resize our organization.†■